TN/AG/GEN/34/Rev.13 TN/AG/SCC/GEN/13/Rev.13 2 November 2020 (20-7682) Page: 1/78 Committee on Agriculture Special Session Sub-Committee on Cotton COTTON BACKGROUND PAPER BY THE SECRETARIAT 1 Revision 1. The Ministerial Decision on Cotton of 7 December 2013 (document WT/MIN(13)/41 – WT/L/916) adopted by Ministers at the 9 th WTO Ministerial Conference in Bali states, inter alia that: "5. In this context, we therefore undertake to enhance transparency and monitoring in relation to the trade-related aspects of cotton. To this end, we agree to hold a dedicated discussion on a bi-annual basis in the context of the Committee on Agriculture in Special Session to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support and Export Competition in relation to cotton. 6. The dedicated discussions shall be undertaken on the basis of factual information and data compiled by the WTO Secretariat from Members' notifications, complemented, as appropriate, by relevant information provided by Members to the WTO Secretariat. 7. The dedicated discussions shall in particular consider all forms of export subsidies for cotton and all export measures with equivalent effect, domestic support for cotton and tariff measures and non-tariff measures applied to cotton exports from LDCs in markets of interest to them." 2. As a result, four Dedicated Discussions on Cotton were held in 2014 and 2015. 2 3. The Ministerial Decision on Cotton of 19 December 2015 (document WT/MIN(15)/46 – WT/L/981) adopted by Ministers at the 10 th WTO Ministerial Conference in Nairobi states, inter alia that: "14. We undertake to continue holding Dedicated Discussions on Cotton on a bi-annual basis, as indicated in paragraphs 5, 6 and 7 of the Bali Ministerial Decision on Cotton (WT/MIN(13)/41 – WT/L/916), including in particular to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support, and Export Competition in relation to cotton. 15. We undertake to regularly monitor the implementation by Members of paragraphs 2 to 4 during these Dedicated Discussions on Cotton, based on relevant Members' notifications to the WTO, complemented as necessary by Members' replies to specific requests for information from the WTO Secretariat." 1 This document has been prepared under the Secretariat's own responsibility and is without prejudice to the positions of Members or to their rights and obligations under the WTO. It has been prepared for information only and is not intended to provide any authoritative or official legal interpretation of the provisions of the WTO Agreements in general on in relation to any measure listed in this document. 2 June and November 2014, and July and November 2015.
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TN/AG/GEN/34/Rev.13
TN/AG/SCC/GEN/13/Rev.13
2 November 2020
(20-7682) Page: 1/78
Committee on Agriculture
Special Session Sub-Committee on Cotton
COTTON
BACKGROUND PAPER BY THE SECRETARIAT1
Revision
1. The Ministerial Decision on Cotton of 7 December 2013 (document WT/MIN(13)/41 – WT/L/916) adopted by Ministers at the 9th WTO Ministerial Conference in Bali states, inter alia that:
"5. In this context, we therefore undertake to enhance transparency and monitoring in relation to the trade-related aspects of cotton. To this end, we agree to hold a dedicated discussion on a bi-annual basis in the context of the Committee on Agriculture in Special Session to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support and Export Competition in relation to cotton.
6. The dedicated discussions shall be undertaken on the basis of factual information and
data compiled by the WTO Secretariat from Members' notifications, complemented, as appropriate, by relevant information provided by Members to the WTO Secretariat. 7. The dedicated discussions shall in particular consider all forms of export subsidies for cotton and all export measures with equivalent effect, domestic support for cotton and tariff measures and non-tariff measures applied to cotton exports from LDCs in markets of interest
to them."
2. As a result, four Dedicated Discussions on Cotton were held in 2014 and 2015.2
3. The Ministerial Decision on Cotton of 19 December 2015 (document WT/MIN(15)/46 –WT/L/981) adopted by Ministers at the 10th WTO Ministerial Conference in Nairobi states, inter alia that:
"14. We undertake to continue holding Dedicated Discussions on Cotton on a bi-annual basis, as indicated in paragraphs 5, 6 and 7 of the Bali Ministerial Decision on Cotton
(WT/MIN(13)/41 – WT/L/916), including in particular to examine relevant trade-related developments across the three pillars of Market Access, Domestic Support, and Export Competition in relation to cotton. 15. We undertake to regularly monitor the implementation by Members of paragraphs 2 to 4 during these Dedicated Discussions on Cotton, based on relevant Members' notifications to the WTO, complemented as necessary by Members' replies to specific requests for information
from the WTO Secretariat."
1 This document has been prepared under the Secretariat's own responsibility and is without prejudice
to the positions of Members or to their rights and obligations under the WTO. It has been prepared for information only and is not intended to provide any authoritative or official legal interpretation of the provisions of the WTO Agreements in general on in relation to any measure listed in this document.
2 June and November 2014, and July and November 2015.
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4. The Nairobi Ministerial Decision on Cotton also states that:
"6. The Dedicated Discussions on Cotton referred to in paragraph 14 of this Decision shall continue to address the following specific elements, based on factual information and data compiled by the WTO Secretariat from Members' notifications, complemented, as appropriate, by relevant information provided by Members to the WTO Secretariat:
(a) identification and examination of market access barriers, including tariff and non-tariff barriers for the entry of cotton produced and exported by cotton-producing LDCs;
(b) reviews of market access improvements and of any market access measures undertaken
by Members, including the identification of access barriers to cotton produced and exported by cotton-producing LDCs in markets of interest to them; and
(c) examination of possible additional measures for progressive and predictable improvements in market access, in particular the elimination of tariff and non-tariff barriers to cotton produced and exported by cotton-producing LDCs."
5. The 5th, 6th, 7th, 8th, 9th, 10th, 11th, 12th and 13th Dedicated Discussions on Cotton
were held on 1 July and 23 November 2016, 24 July and 17 November 2017, 19 June and
28 November 2018, 4 June and 20 November 2019 and 30 July 2020, respectively.
6. As requested by the Nairobi Ministerial Decision and based on the approach resulting from the Bali Ministerial Decision, the WTO Secretariat has prepared, in advance of the 14th Dedicated Discussion on Cotton, a revised compilation of factual information and data available from Members' notifications and other submissions, on Market Access, Domestic Support and Export Competition in relation to cotton, received up to 16 October 2020.
7. Further to Members' requests at the second dedicated discussion, this revised background paper
also includes: (i) Members' responses to the questionnaire on cotton policy developments circulated on 21 September 2020; and (ii) relevant information on cotton markets and policies from Trade Policy Review reports circulated up to 16 October 2020, for the 32 Members identified in paragraphs 12 and 13 of this paper.3
8. The paper is organized in three parts, namely:
• Export Subsidies4;
• Domestic Support; and • Market Access.
9. The factual information and data contained in this paper have been compiled from:
• Members' schedules and notifications in the Market Access (MA), Domestic Support (DS) and Export Subsidies (ES) series under the Committee on Agriculture;
• Tariff data available in the WTO Integrated Database (IDB) and Consolidated Tariff Schedules Database (CTS); as well as
• Non-tariff measures available in the WTO Integrated Trade Intelligence Portal (I-TIP) Goods Database.
10. The specific sources of information for each of the areas covered are described under the relevant parts of the paper.
3 This information is presented in Annexes 4 and 5. 4 With regards to the disciplines and commitments contained in the Ministerial Decision on Export
Competition (WT/MIN(15)/45 – WT/L/980 adopted on 19 December 2015), referred to in paragraph 9 of the Nairobi Ministerial Decision on Cotton, Members can also refer to the Secretariat background paper on export subsidies, export credits and export credit guarantees or insurance programmes, international food aid, and agricultural exporting STEs (document G/AG/W/125/Rev.13 and its four addenda, dated 26 October 2020).
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11. With regards to Export Subsidies and Domestic Support (Part one and two of the paper), factual information and data were collected for all WTO Members with relevant commitments or who have reported measures benefitting cotton in their relevant notifications.
12. With regards to Market Access (Part three of the paper), and based on previous practice, the list of markets of interest to LDCs was established by collecting market access data for WTO Members that are either: (i) classified as developed economies for the purpose of the
WTO Secretariat note on the "Participation of Developing Economies in the Global Trading System"5; (ii) amongst the top 20 cotton importing countries in quantity for the period 2010-2012; or (iii) amongst the top 20 cotton importing countries in quantity from LDCs for the period 2010-2012.6
13. As a result, market access data are provided, in accordance with the Bali and Nairobi Ministerial
Decisions on Cotton, for the following 32 Members:7 Australia; Bahrain, Kingdom of;
Bangladesh; Brazil; Canada; China; Colombia; Egypt; the European Union; Hong Kong, China; Iceland; India; Indonesia; Japan; Kenya; Korea, Republic of; Malaysia; Mauritius; Mexico; Morocco; New Zealand; Norway; Pakistan; Peru; Russian Federation; South Africa; Switzerland; Chinese Taipei; Thailand; Turkey; the United States and Viet Nam.
14. Unless otherwise indicated, the term "cotton" in this paper refers to the products covered by the Harmonized System nomenclature (HS) headings 52.01, 52.02 and 52.03.
15. The Annexes to this document, including Members' replies to the questionnaire on
cotton-related policy developments (Annex 4) and information on cotton markets and policies from the trade policy review mechanism (Annex 5), are contained in an addendum (TN/AG/GEN/34/Rev.13/Add.1 – TN/AG/SCC/GEN/13/Rev.13/Add.1).
3.2 SPECIAL SAFEGUARD PROVISIONS ............................................................................. 46
3.2.1 Scheduled SSG provisions for cotton ........................................................................ 47
3.2.2 Notified trigger prices for cotton .............................................................................. 47
5 Document WT/COMTD/W/251, Appendix 8 with the European Union counted as one and Switzerland
and Liechtenstein also counted as one. 6 The top 20 cotton importing countries were identified using COMTRADE data processed by the
WTO Secretariat, and supplemented by data from the International Cotton Advisory Committee (ICAC). 7 In the absence of significant change in the list of Members when using the period 2016-2018, the list
used in document TN/AG/GEN/34 has been kept unchanged for the sake of comparability. The United Kingdom withdrew from the European Union as of 1 February 2020. The European Union and the United Kingdom have communicated that, during the transition period, which ends on 31 December 2020, Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom.
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3.2.3 Invoked price-based SSG for cotton ......................................................................... 48
Chart 3.6: South Africa (ZAFQ053) .................................................................................... 57
Chart 3.7: United States (USAQ049) .................................................................................. 57
Chart 3.8: United States (USAQ050) .................................................................................. 58
Chart 3.9: United States (USAQ051) .................................................................................. 58
Chart 3.10: United States (USAQ052) ................................................................................ 59
Chart 3.11: United States (USAQ053) ................................................................................ 59
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Chart 3.12: United States (USAQ054) ................................................................................ 60
Chart 3.13: Number of other non-tariff measures applicable to cotton, per type of measure (1 January 2012 to 16 October 2020) ................................................................................. 61
1 EXPORT SUBSIDIES
1.1. Part One provides information on the use of export subsidies for cotton by Members. It is divided into two sections:
• Section 1.1 provides information on export subsidy reduction commitments, both in terms of budgetary outlay and quantity; and
• Section 1.2 provides information on notified export subsidy budgetary outlays and
quantities.
1.2. As noted earlier, with regards to the disciplines and commitments contained in the Nairobi Ministerial Decision on Export Competition (WT/MIN(15)/45 – WT/L/980 adopted on
19 December 2015) referred to in paragraph 9 of the Nairobi Ministerial Decision on Cotton, Members can also refer to the Secretariat background paper on export subsidies, export credits and export credit guarantees or insurance programmes, international food aid, and agricultural exporting STEs (document G/AG/W/125/Rev.13, G/AG/W/125/Rev.13/Add.1, G/AG/W/125/Rev.13/Add.2, G/AG/W/125/Rev.13/Add.3 and G/AG/W/125/Rev.13/Add.4, dated 26 October 2020). It can be noted in that regard that: (i) China's latest available information continues to indicate the existence of four agricultural exporting State Trading Enterprises for cotton;
and (ii) the United States and Japan, respectively, identified in their latest replies cotton or HS 5202-5203 in the list of products covered by their export financing programmes.
1.1 EXPORT SUBSIDY COMMITMENTS
1.3. This section lists export subsidy reduction commitments for cotton by Member and by implementation year8, as specified in Members' schedules. The tables show, for each Member concerned, the annual and final bound export subsidy budgetary outlay and quantity commitments. The following column headings are used:
XSID The number identifying export subsidy commitments for each Member in the CTS, in the same sequential order as scheduled. The seven-character code is comprised of the three-letter WTO Member code, followed by "X" for "export subsidy", followed by the three-digit sequential identifier;
Product The product or group of products as specified in the Member's schedule9;
Tariff Line(s) The tariff item number(s) as specified in the Member's schedule reproduced in the CTS using the HS 2002 nomenclature; and
1995… Budgetary outlay and quantity commitments for each implementation year. 1.4. For each Member, the currency/quantity unit and the type of year (i.e. calendar, financial, fiscal
or marketing year) are indicated as specified in that Member's schedule.
8 Throughout this paper, the term "implementation year" refers to the relevant calendar, financial, fiscal
or marketing year as specified by individual Members. 9 In original language only.
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1.1.1 Bound export subsidy commitments for cotton10
10 Further to the Nairobi Ministerial Decision on Export Competition of 19 December 2015 (document WT/MIN(15)/45 – WT/L/980), Colombia, Israel and South Africa
certified their revised export subsidies as of 22 September, 11 March and 10 October 2018, respectively, and their entitlements to cotton export subsidies have been eliminated. Brazil is still carrying out necessary internal steps prior to the circulation of its revised draft schedule as of 16 October 2020.
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SOUTH AFRICA
Budgetary outlays commitments in rand (calendar year)
1.5. This section lists export subsidies for cotton notified by Members in Table ES:1 as well as export subsidies for cotton notified in Supporting Tables ES:2 by
developing country Members who have taken recourse to Article 9.4 of the Agreement on Agriculture. This section includes notifications circulated by the Secretariat up to 16 October 2020.
1.6. The following column headings are used:
XSID The number identifying export subsidy commitments for each Member in the CTS, in the same sequential order as scheduled. The seven-character code is comprised of the three-letter WTO Member code, followed by "X" for "export subsidy", and by the three-digit sequential identifier. A blank indicates that no export subsidy reduction commitments are scheduled for the product in question;
Product The product or group of products as specified in the Member's schedule11 or in the Member's notification; and 1995… The notified budgetary outlay or quantity for each implementation year from 1995 up to the latest implementation year as indicated in the Member's
most recent Table ES:1 notification or the last year for which the Member had an export subsidy reduction commitment for cotton in its schedule. A blank indicates that no notification has been received for the year in question or that, for Members without scheduled export subsidy commitments for cotton, the notification does not mention cotton.
1.7. For each Member, the currency/quantity unit and the type of year (i.e. calendar, financial, fiscal or marketing year) are indicated as specified in that Member's schedule or in the Member's notification.
11 In original language only.
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1.2.1 Notified budgetary outlays and quantities for cotton (Table ES:1)
1 Direct export subsidies (as indicated in Supporting Table ES:1). 2 Producer financed subsidies (as indicated in Supporting Table ES:1). 3 For US notifications covering the implementation years 2003-2005, the following footnote was included: "The panel and Appellate Body reports in the dispute
United States – Subsidies on Upland Cotton (DS267) found that certain payments to exporters under the Upland Cotton Domestic Marketing Certificate Program constituted export subsidies within the meaning of the Agreement on Agriculture. On 8 February 2006, the United States enacted legislation to repeal the programme at the end of the 2005 marketing year (i.e., 31 July 2006). Quantity and budgetary data are based on when payments were made." For US notifications covering the implementation years 2006-2013, the following footnote was included: "The panel and Appellate Body reports in the dispute United States – Subsidies on Upland Cotton (DS267) found that certain payments to exporters under the Upland Cotton Domestic Marketing Certificate Program constituted export subsidies within the meaning of the Agreement on Agriculture. On 8 February 2006, the United States enacted legislation to repeal the program at the end of the 2005 marketing year (i.e., 31 July 2006). All cotton under the program was shipped by 31 July 2006; quantity and budgetary data are based on when payments were made."
1.2.2 Notified budgetary outlays and quantities for cotton (Supporting Table ES:2)
INDIA
Notified budgetary outlays in million USD (marketing year)
1 International Air Freight Assistance in terms of Article 9.1(d) (as indicated in the footnote in India's Supporting Table ES:2 for implementation years 2004 and 2005).
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Charts on scheduled and notified export subsidy budgetary outlays and quantities12
1.8. Based on the information presented in sections 1.1 and 1.2 above, the charts in this section show, by Member and by year, the export subsidy budgetary outlays and quantities notified in
Table ES:1 and Supporting Tables ES:2, and the corresponding commitment levels where they exist.
1.9. In all charts, export subsidy budgetary outlays notified and budgetary outlay commitments are plotted on the left axis and export subsidy quantities notified and quantity commitments are plotted on the right axis.
Chart 1.1: Brazil
Chart 1.2: Colombia
12 Chart 34 of the Secretariat background document G/AG/W/125/Rev.13 shows the sum of the export
subsidy budgetary outlays notified (Table ES:1) and scheduled by all Members for cotton, for the period 1995-2015.
2.1. Part Two provides information on the use of domestic support measures in favour of cotton based on Table DS:1 notifications circulated by the Secretariat up to 16 October 2020. It is divided into two sections:
• Section 2.1 provides information on product-specific Aggregate Measurement of Support13 as notified in Supporting Tables DS:4 to DS:8. The section also includes, further to
Members' requests at the third dedicated discussion, a table which provides, for each Member listed in Section 2.1, the level of product-specific AMS for cotton, together with the current Total AMS and the value of production for cotton (if available) for the most recent available year of notification; and
• Section 2.2 provides information on direct payments in accordance with Article 6.5 as notified in Supporting Table DS:3.
2.1 PRODUCT SPECIFIC AGGREGATE MEASUREMENT OF SUPPORT
2.2. This section details the level of product-specific AMS for cotton by Member and by implementation year.
2.3. The levels of the various domestic support categories that compose the product-specific support for cotton used in the AMS calculation are also listed. The different categories are the following:
• market price support (Supporting Table DS:5);
• non-exempt direct payments (Supporting Table DS:6);
• other product-specific support (Supporting Table DS:7); and • product-specific support calculated using the Equivalent Measurement of Support (EMS)
methodology (Supporting Table DS:8).
2.4. For each Member, the implementation years are those indicated in the Member's Table DS:1 notifications, and the notified currency unit is indicated in brackets.
Symbols used
Product-specific AMS figures in italic and underlined represent support notified as de minimis. A blank indicates the absence of a notification for the year in question. "0" indicates that the Member notified zero support or that the Member has not notified any support
for the support category concerned.
Figures in brackets represent negative support.
13 Also referred to as product-specific AMS. Throughout this paper, this term also includes the
product-specific Equivalent Measurement of Support calculated according to Annex 4 of the Agreement on Agriculture.
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2.1.1 Product-specific AMS notified for cotton14
Argentina15
(1992 Pesos) 2015 2016 2017
Market price support 0 0 0 Non-exempt direct payments 0 0 0 Other product-specific support 16,869,511 10,419,078 9,590,300 Product-specific EMS 0 0 0 Product-specific AMS 16,869,511 10,419,078 9,590,300
1 In Brazil's notification for 2014, 2015, 2016, 2017, and 2018, the following note was included in Supporting Table 7 - Other Product-Specific Support and Total Product-Specific AMS: "The following products may be supported by non-exempt support programmes, according to the available funds and the market price: barley, Brazilian wax, canola, cashew nut, cassava, cassava flour, cassava starch, castor beans, coffee, cotton, cottonseed, edible beans, ethanol, garlic, grapes, guarana, jute, maize, malva, milk, oat, orange, peanuts, rice, silk cocoon, sisal, sorghum, soybeans, sugar cane, sunflower, triticale and wheat. If the product is not listed in this table, it means the product received no support during the crop-year. Some products have the right to be supported only on specific States or Regions."
14 For implementation years 1995-1999, Pakistan maintained a positive applied administered price for "seed cotton", but Market Price Support was calculated as zero
because there was no eligible production. 15 Argentina did not notify any cotton-specific support in Supporting Tables 4-9 prior to implementation year 2015 (agricultural year 1 December 2014 to
1 The following footnote was included in China's notification covering implementation years 1999-2001: "From the year 1999, cotton purchase in China became market oriented and the State Procurement Pricing for Cotton did not work any longer. Therefore, there was no price support in this reporting period. The product-specific de minimis supports to cotton were primarily provided through interest subsidies for national cotton stockholdings."
2 The following footnote was included in China's notification covering implementation years 2002-2004: "Support to cotton include interest subsidy for national stock cotton".
3 The following footnote was included in China's notification covering implementation years 2005-2010: "Support to cotton includes subsidy for improved crop strains and
seeds, subsidy for reserve cost, cost subsidy for transporting cotton out of Xinjiang Uygur Autonomous Region". 4 The following footnote was included in China's notification covering implementation years 2011-2014: "Temporary Reserve programme for cotton was terminated in
2014." 5 The following footnote was included in China's notification covering implementation years 2011-2016: "Subsidy for improved crop strains and seeds, and cost subsidy for
transporting cotton out of Xinjiang Uygur Autonomous Region." 6 The following footnote relevant to cotton was included in China's notification covering implementation years 2011-2016: "Support measures for cotton were terminated".
1 The following footnote was included in India's notification covering implementation years 2004-2015 and 2017-2018: "Applied administered price is procurement price for lint cotton. A co-efficient of 2.35 has been used for conversion from seed cotton".
Charts on product-specific AMS notified for cotton by category of support
Based on the information presented in section 2.1.1 above, the charts in this section show, by Member and by year, (i) the various levels for the domestic support categories that were included in the calculation of the product-specific AMS notified for cotton and (ii) the overall cotton AMS figure (italic and underlined figures represent support notified as de minimis; figures in brackets represent support notified as negative).
Chart 2.1: Argentina
Chart 2.2: Brazil
16,869,511
10,419,0789,590,300
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
2015 2016 2017
19
92
Pe
sos
Market price support Non-exempt direct payments Other product-specific support Product-specific EMS
Market price support Non-exempt direct payments Other product-specific support Product-specific EMS
0
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Chart 2.13: United States
Chart 2.14: Viet Nam
Overview of cotton product-specific support, current total AMS and value of production for cotton
2.5. Further to Members' requests at the third dedicated discussion, the following table shows, for each Member listed in Section 2.1 and for the most recent year of notification, the level of product-specific AMS for cotton, together with the current Total AMS and the value of production for cotton (if available). For ease of comparison, product-specific AMS for cotton are further expressed in US dollars. The following column headings are used:
Market price support Non-exempt direct payments Other product-specific support Product-specific EMS
0.074
0 0 0 0 0 00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
2007 2008 2009 2010 2011 2012 2013
Bill
ion
VN
D
Market price support Non-exempt direct payments Other product-specific support Product-specific EMS
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Member Name of Member having notified product-specific support for cotton, as shown in Section 2.1.1;
Latest year notified The most recent year for which a domestic support notification is available for the Member concerned;
Notified Currency The currency used in the Member's notification; Cotton-specific AMS Product-specific support notified for cotton. Italic and underlined
figures represent support notified as de minimis;
Current Total AMS Sum of all product-specific and non-product-specific AMS as notified in Table DS:1 or Supporting Table DS:4. "De minimis" represents cases where all product-specific and non-product specific support are notified as de minimis. "0" indicates that the Member has not notified any product-specific or non-product specific support;
VoP-cotton Value of production data notified for cotton, if available;
Cotton-specific AMS in Product-specific support notified for cotton expressed in US dollars. USD Where data were provided in a currency other than USD, the conversion to USD was made using the exchange rates from the IMF's "International Financial Statistics". The IMF exchange rates are year averages for the relevant year of notification of each Member. Italic and underlined figures represent support notified as
de minimis.
Member
Latest
year
notified
Notified currency
Cotton-specific AMS
Current
Total
AMS
VoP-cotton
Cotton-specific
AMS
(Million USD)
Argentina 2017 1992 pesos de minimis
9,590,300
72,483,719 285,105,160 de minimis
0.14
Brazil 2018 Thousand USD 0 0
0
China 2016 Million RMB 16,844 81,357 79,010 2,610.38 Colombia 2016 Thousand USD de minimis
United States 2017 Million USD 952.05 4,248.74 8134.46 952.05
Viet Nam 2013 Billion VND 0 de minimis
0
2.1.2 Direct Payments in Accordance with Article 6.5
2.6. This section details the levels of direct payments for cotton in accordance with Article 6.5 as notified in Supporting Table DS:3. Since 1995, two Members16 have notified this type of support for cotton: the European Union from implementation year 2006 onwards and the United States for 1995 only.
2.7. The notified currency unit is indicated in brackets in the title for both Members.
2.8. The information presented in each table is also presented as a chart showing the level of the direct payment notified by the Member concerned.
16 China notified in its Table DS:2 notification (G/AG/N/CHN/48, circulated on 14 December 2018) that a
new measure titled "Deepening the Target Price Policy Reform of Cotton" meeting the criteria of paragraph 5(b), Article 6 will be applied during 2017-2019.
1 As of 2009, the reference for the payment also includes Title IV, Chapter 1 of Regulation 73/2009.
United States
(Million USD) Description of Measure 1995
Payments based on 85% or less of base level of production: Deficiency payments for marketing year 1995 were only made on 85% of base acreage and program yields have been held constant.
901.022
Charts on direct payments for cotton in accordance with Article 6.5
3.1. By way of an introduction to this Part on tariffs and non-tariff measures relevant to market access for cotton, the following overview charts show the evolution of total imports of cotton with a breakdown between imports from LDCs and from the rest of the world, in value and quantity, over the period 2009-2019.
Charts on market access (overview)1
Chart 3.1: Total imports of cotton from World and LDCs, 2009-2019, value
Imports from LDC as % of total imports (Right axis)
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Chart 3.2: Total imports of cotton from World and LDCs, 2009-2019, quantity
1 Sum of available reporters – Source UN Comtrade – HS codes 5201, 5202 and 5203.
3.2. The following overview tables show total imports of cotton and imports from LDCs, in value and quantity, for the 32 Members17 identified in paragraphs 12 and 13 of this paper. The last column
shows the percentage of imports originating from LDCs.
Table 3.1: Imports of cotton18 from World and LDCs, 201919 in value (USD Million)
China 3,570 273 7.7% Colombia 27 0 0.0% Egypt 237 83 34.9% European Union3 388 29 7.5% Hong Kong, China 2 0 0.0% Iceland 0 0 0.9% India 1,344 172 12.8% Indonesia 1,119 45 4.0% Japan 123 0 0.2% Kenya1 5 5 96.7% Korea, Republic of 271 0 0.0% Malaysia 303 11 3.7% Mauritius 52 27 53.0% Mexico 230 0 0.0% Morocco 12 1 4.8% New Zealand 2 0 0.0% Norway 1 0 1.1% Pakistan 711 85 11.9% Peru 96 0 0.0% Russian Federation 60 0 0.0% South Africa 27 17 63.1% Switzerland-Liechtenstein 11 0 0.0% Chinese Taipei 243 2 0.7% Thailand 377 33 8.8%
17 The United Kingdom withdrew from the European Union as of 1 February 2020. The European Union
and the United Kingdom have communicated that, during the transition period, which ends on 31 December 2020, Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom.
18 HS codes 5201, 5202, 5203. 19 For those Members whose import statistics are not available for 2019, imports in previous years are
From World minus LDCs (Left axis) From LDCs (Left axis) Imports from LDC as % of total imports (Right axis)
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World LDC Percentage of imports from
LDCs (%) Turkey 1,597 54 3.4% United States 18 0 0.3% Viet Nam 2,453 28 1.1%
1 Imports of 2018. 2 Imports of 2015. 3 Sum of EU member States (as reported to Comtrade), extra-trade, including the United Kingdom.
Source: UN Comtrade database.
Table 3.2: Imports of cotton20 from World and LDCs, 201921 in quantity (metric tonnes)
World LDC Percentage of imports from
LDCs (%) Australia 68 0 0.0% Bahrain, Kingdom of1 16,094 3,363 20.9% Bangladesh2 1,329,924 100,680 7.6% Brazil 2,122 652 30.7% Canada 7,336 0 0.0% China 1,848,852 152,418 8.2% Colombia3 34,597 1,552 4.5% Egypt 39,906 18,933 47.4% European Union4 232,607 17,686 7.6% Hong Kong, China5 18,694 1,372 7.3% Iceland 2 0 0.0% India 735,966 131,270 17.8% Indonesia 608,669 24,275 4.0% Japan 65,835 127 0.2% Kenya1 3,347 3,118 93.2% Korea, Republic of 1,262 0 0.0% Malaysia 219,702 30,199 13.7% Mauritius 28,469 15,204 53.4% Mexico 124,954 0 0.0% Morocco 6,142 309 5.0% New Zealand 138 0 0.0% Norway 31 1 3.7% Pakistan 406,073 63,845 15.7% Peru 47,844 0 0.0%
Russian Federation 29,147 124 0.4% South Africa 15,622 9,375 60.0% Switzerland-Liechtenstein 5,642 1 0.0% Chinese Taipei 166,356 1,048 0.6% Thailand 211,131 18,372 8.7% Turkey 961,443 30,799 3.2% United States 12,451 16 0.1% Viet Nam 1,386,600 17,042 1.2%
1 Imports of 2018. 2 Imports of 2015. 3 Imports of 2016. 4 Sum of EU member States (as reported to Comtrade), extra-trade, including the United Kingdom. 5 Imports of 2017.
Source: UN Comtrade database.
3.3. The following overview table22 show, for major cotton exporters, data on shares of export volumes in world exports. The statistics cover the period 2008 to 2018 and shows the world market
shares of the leading exporters for cotton.23 Exporters are ranked in descending order based on their exports in the most recent year for which data are available (i.e. 2018).
20 HS codes 5201, 5202, 5203. 21 For those Members whose import statistics are not available for 2019, imports in previous years are
listed. 22 Reproduced from the most recent revision of the Secretariat note on "Members' Participation in the
Normal Growth of World Trade in Agricultural Products – Article 18.5 of the Agreement on Agriculture", G/AG/W/32/Rev.18, dated 16 October 2019.
23 The statistics of the Uruguay Round base period for export subsidy reduction commitments, i.e. 1986-90, are included in the previous revisions of the G/AG/W/32 series.
Notes: 1 The data are sourced from UN Comtrade (reported data, complemented by mirror data), Trade Data Monitor (TDM) and, in some cases, WTO estimates. Other sources
may produce different results in terms of absolute volumes and values as well as year-to-year changes of shares in world export volumes/values. This may be due to a variety of reasons, including differences with respect to product definition, reporting period (e.g. calendar year versus marketing year), conversion factors or the revision of data.
2 The trade data of the European Union (EU) as well as the aggregate exports (referred to as "world totals" in the tables) exclude intra-EU trade. The data for the EU refers to the EU-27 (2008-2013) and EU-28 (2014-2018). The country-specific and commodity-specific explanatory notes which are contained in the source data are not reproduced in this note.
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3.4. As explained at the beginning of this background paper, this Part on Market Access provides information on the cotton tariff levels and the use of various non-tariff measures for the 32 Members identified as per paragraphs 12 and 13. Part Three is divided into four sections:
• Section 3.1 lists bound and applied tariffs for cotton based on: (i) Members' schedules as reflected in the CTS database, and (ii) data on applied tariffs contained in the IDB database;
• Section 3.2 provides information on the special safeguard provisions for cotton based on Members' schedules and Table MA:3, MA:4 and MA:5 notifications;
• Section 3.3 provides information on cotton tariff rate quotas based on Members' schedules and Table MA:1 and MA:2 notifications; and
• Section 3.4 lists various other non-tariff measures, based on data contained in the WTO I-TIP Goods database and notifications under the Agreement on Import Licensing procedures.
3.5. Market access data for the relevant cotton-related products (other than cotton) included in the list annexed to the Nairobi Ministerial Decision on Cotton24 are available in the Addendum to this document (TN/AG/GEN/34/Rev.13/Add.2), using the same methodology and presentation as in this Part.
3.1 TARIFFS
3.6. This section lists bound and applied duties for cotton for the 32 Members25 identified in paragraphs 12 and 13 of this paper.
3.7. The following first table shows the average and maximum bound and applied duties for the cotton product group26, as they appear in the World Tariff Profile 2019.27 The methodology used to calculate these average and maximum duties, in particular the averaging and the ad valorem
equivalent calculation, can be found in the World Tariff Profile 2019.
Table 3.4: Bound and Applied Tariff from World Tariff Profile 2019 for Cotton Product Group
Member Average Duty (%) Maximum Duty (%)
Bound Applied (2018) Bound Applied (2018) Australia 1.2 0 2 0 Bahrain, Kingdom of 35 5 35 5 Bangladesh 200 3.5 200 5 Brazil 55 6.4 55 8 Canada 0.8 0 8 0 China 22 18 40 40 Colombia 75.8 5 99 5 Egypt 5 4 5 5 European Union 0 0 0 0 Hong Kong, China 0 0 0 0 Iceland 2.2 0 11 0 India 110 26 150 30 Indonesia 37.4 4 40 5 Japan 0 0 0 0 Kenya 100 0 100 0 Korea, Republic of 2 0 2 0 Malaysia* 4 0 5 0 Mauritius 122 0 122 0 Mexico 39.4 0 45 0 Morocco* 22 2.5 34 2.5 New Zealand 0 0 0 0 Norway 0 0 0 0
Pakistan 13 7.8 25 11 Peru 30 2.4 30 6
24 Paragraph 4 of WT/MIN/(15)/46 – WT/L/981. 25 The United Kingdom withdrew from the European Union as of 1 February 2020. The European Union
and the United Kingdom have communicated that during the transition period, which ends on 31 December 2020, EU law, with a few limited exceptions, continues to be applicable to and in the United Kingdom. During that transition period, the EU most-favoured nation (MFN) applied and preferential tariffs continue to be applicable in the United Kingdom. See WT/LET/1462 and WT/GC/206.
26 Corresponding to the Harmonized System nomenclature 2012 (HS 2012) headings 52.01 to 52.03. 27 https://www.wto.org/english/res_e/booksp_e/tariff_profiles19_e.pdf.
Bound Applied (2018) Bound Applied (2018) Russian Federation 0 0 0 0 South Africa 60 4.6 60 15 Switzerland 0 0 0 0 Chinese Taipei 0 0 0 0 Thailand* 4.5 0 4.5 0 Turkey 10.9 0 12.6 0 United States 5 5 18.8 18.8 Viet Nam 14 6 20 10
* Applied tariff data are from 2017.
Bound and Applied Cotton Tariffs (most recent year available)
3.8. The series of tables below show, for each Member, scheduled bound cotton tariffs as reflected in the CTS database and the applied cotton tariffs as reported in the IDB database. The following column headings are used:
BOUND DUTIES: Bound duties presented according to the following column subheadings: Tariff line (HS year) The tariff item number(s) as specified in the Member's schedule
reproduced in the CTS file, using the HS nomenclature indicated in brackets;
Designation: The product description for the corresponding tariff heading,
subheading or line, as specified in the Member's schedule reproduced in the CTS file (in original language only);
Bound Duty: The level of duty for the corresponding tariff line, as specified in the Member's schedule reproduced in the CTS file; and
Other Duty and Charges: The level of other duties and charges (and related information) for
the corresponding tariff line, as and when specified in the Member's schedule reproduced in the CTS file.
APPLIED DUTIES: Applied duties (for the most recent year available as indicated in brackets), presented according to the following column subheadings: Tariff line (HS year) The tariff item number(s) as specified in the Member's IDB file, using the HS
nomenclature indicated in brackets;
MFN The level of applied MFN duty for the corresponding tariff line, as specified in the Member's IDB file; and
LDC Preferential The level of duty for the corresponding tariff line, as specified in the
Member's IDB file, applied in the context of a preferential regime for LDC imports. The absence of data in the column reflects either the absence of such a regime for that Member or the absence of information on such a
regime within the IDB.
Australia
Bound Duties Applied Duties
(Year 2020)
Tariff Line
(HS 2007) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
520100 Cotton, not carded or combed 0% 52010000 0% 0%
5202 Cotton waste (including yarn waste and garnetted stock):
52030000 - Cotton, carded or combed 40% 52030000 40% 40%
Colombia
Bound Duties Applied Duties
(Year 2020)
Tariff Line
(HS 2007) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
5201000000 Algodón sin cardar ni peinar 99%
5201001000¹ 5%
5201002000² 5% 5201003000³ 5%
5201009000⁴ 5%
5202 Desperdicios de algodón (incluidos los
desperdicios de hilados y las hilachas)
5202100000 - Desperdicios de hilados 70% 5202100000 5%
52029 - Los demás:
5202910000 -- Hilachas 70% 5202910000 5%
5202990000 -- Los demás 70% 5202990000 5%
5203000000 Algodón cardado o peinado 70% 5203000000 5%
1 De longitud de fibra superior a 34.92 mm (1 3/8 pulgada). 2 De longitud de fibra superior a 28.57 mm (1 1/8 pulgada) pero inferior o igual a 34.92 mm
(1 3/8 pulgada). 3 De longitud de fibra superior a 22.22 mm (7/8 pulgada) pero inferior o igual a 28.57 mm
(1 1/8 pulgada). 4 De longitud de fibra inferior o igual a 22.22 mm (7/8 pulgada).
Egypt
Bound Duties Applied Duties
(Year 2019)
Tariff Line
(HS 2012) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
52010000 Cotton, not carded or combed 5% 5201000010¹ 0%
52030000 Cotton, carded or combed 5% 5203000000 5%
1 Raw cotton not mixed Giza 45 not carded or combed, not ginned. 2 Raw cotton not mixed Giza 31 not carded or combed, not ginned. 3 Raw cotton not mixed Giza 66 not carded or combed, not ginned. 4 Raw cotton not mixed Giza 67 not carded or combed, not ginned. 5 Raw cotton not mixed Giza 68 not carded or combed, not ginned. 6 Raw cotton not mixed Giza 69 not carded or combed, not ginned. 7 Raw cotton not mixed Giza 83 not carded or combed, not ginned. 8 Raw cotton not mixed Giza 84 not carded or combed, not ginned. 9 Raw cotton not mixed Giza 85 not carded or combed, not ginned. 10 Raw cotton not mixed Giza 76 not carded or combed, not ginned. 11 Raw cotton not mixed Giza 77 not carded or combed, not ginned. 12 Raw cotton not mixed Giza 80 not carded or combed, not ginned. 13 Raw cotton not mixed Giza 81 not carded or combed, not ginned. 14 Raw cotton not mixed Giza 82 not carded or combed, not ginned. 15 Raw cotton not mixed Giza 70 not carded or combed, not ginned. 16 Raw cotton not mixed Giza 72 not carded or combed, not ginned. 17 Raw cotton not mixed Giza 75 not carded or combed, not ginned. 18 Other cotton not carded or combed, not ginned. 19 Other cotton not carded or combed, ginned.
European Union
Bound Duties Applied Duties
(Year 2020)
Tariff Line
(HS 2002) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
5201 Cotton, not carded or combed:
52010010 - Rendered absorbent or bleached 0%
52010010 0% 0%
52010090 - Other 0%
52010090 0% 0%
5202 Cotton waste (including yarn waste and
garnetted stock):
52021000 - Yarn waste (including thread waste) 0%
52021000 0% 0% 52029 - Other:
52029100 -- Garnetted stock 0%
52029100 0% 0%
52029900 -- Other 0%
52029900 0% 0%
52030000 Cotton, carded or combed 0%
52030000 0% 0%
Hong Kong, China
Bound Duties Applied Duties (Year 2020)
Tariff Line (HS 2007)
Designation Bound Duty
Other Duties & Charges
Tariff Line (HS 2017)
MFN LDC
Preferential
52010000 Cotton, not carded or combed 0% 52010000 0%
52030000 Cotton, carded or combed 150% 52030000 30%
1 Bengal deshi. 2 Indian cotton of staple lengths 20.5 mm (25/32") and below (e g. oomras, yellow picking, Assam
Comillas). 3 Indian cotton of staple length exceeding 20.5mm (26/32") and but not exceeding 24.5mm (30/32"). 4 Indian cotton of staple length over 24.5 mm (31/32") to 28 mm. 5 Indian cotton of staple length 28.5 mm (1 4/32") and above but below 34.5 mm. 6 Indian cotton of all staple length 34.5 mm and above (1 12/32"). 7 Cotton, other than Indian, of all staple lengths.
Indonesia
Bound Duties Applied Duties
(Year 2018)
Tariff Line
(HS 2002) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
5201 Cotton, not carded or combed
520100000 - Cotton, not carded or combed 27% 52010000 0%
52029900 -- Other 15% 52029900 11% 52030000 Cotton, carded or combed 5% 52030000 3%
1 Length not exceeding 20.5 mm. 2 Length exceeding 20.5 mm but not exceeding 24.5 mm. 3 Length exceeding 24.5 mm but not exceeding 28.5 mm. 4 Length exceeding 28.5 mm but not exceeding 31 mm. 5 Length exceeding 31 mm but not exceeding 34.5 mm. 6 Length exceeding 34.5 mm.
Peru
Bound Duties Applied Duties
(Year 2018)
Tariff Line
(HS 2012) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
5201000000 ---Algodón sin cardar ni peinar. 30%
5201001000¹ 6% 5201002000² 6%
5201003000³ 6%
5201009000⁴ 6%
5202 Desperdicios de algodón (incluidos los
desperdicios de hilados y las hilachas)
5202100000 - Desperdicios de hilados 30% 5202100000 0%
52029 - Los demás:
5202910000 -- Hilachas 30% 5202910000 0%
5202990000 -- Los demás 30% 5202990000 0% 5203000000 --- Algodón cardado o peinado 30% 5203000000 6%
1 De longitud de fibra superior a 34.92 mm (1 3/8 pulgada). 2 De longitud de fibra superior a 28.57 mm (1 1/8 pulgada) pero inferior o igual a 34.92 mm
(1 3/8 pulgada). 3 De longitud de fibra superior a 22.22 mm (7/8 pulgada) pero inferior o igual a 28.57 mm
(1 1/8 pulgada). 4 De longitud de fibra inferior o igual a 22.22 mm (7/8 pulgada).
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Russian Federation
Bound Duties Applied Duties
(Year 2020)
Tariff Line
(HS 2007) Designation
Bound
Duty
Other Duties
& Charges
Tariff Line
(HS 2017) MFN
LDC
Preferential
520100 Cotton, not carded or combed:
5201001000 - rendered absorbent or bleached 0% 5201001000 0% 0% 5201009000 - other 0% 5201009000 0% 0%
52030000 Cotton, carded or combed 10% 5203000000 0%
3.2 SPECIAL SAFEGUARD PROVISIONS
3.9. This section provides information on scheduled special safeguard (SSG) provisions for cotton and on the use of those provisions by Member.
3.10. Of the 32 Members covered by this Market Access Part, three have scheduled SSG provisions for cotton, namely, Colombia, South Africa, and the United States.
3.11. The following table lists the cotton tariff lines for which SSG provisions are specified in each of those three Members' schedules. The following column headings are used:
Member The name of the Member who has reserved SSG provisions for cotton; and Tariff Line The tariff item number for which the SSG provision was reserved (through the
inclusion of the symbol "SSG") as specified in the Member's schedule reproduced in the CTS file using the HS 2002 nomenclature.
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3.2.1 Scheduled SSG provisions for cotton
Member Tariff Line Colombia 5201000000 South Africa 52010010 52010020 52010090 52021010 52021090 52029110 52029190 52029910 52029990 52030000 United States 52010018 52010028 52010038 52010080 52029930 52030030
3.12. Based on Table MA:3 notifications circulated by the Secretariat up to 16 October 2020, none of those three Members has notified trigger levels for the volume-based SSG concerning cotton.
3.13. Regarding the price-based SSG, based on Table MA:4 notifications circulated by the Secretariat up to 16 October 2020, the United States have notified trigger prices for all the tariff lines for which SSG provisions were reserved. These trigger prices are presented by tariff item
number in the table below. The following column headings are used:
Tariff Line The tariff item number for which the SSG provision was reserved (through the
inclusion of the symbol "SSG") as specified in the Member's schedule reproduced in the CTS using the HS 2002 nomenclature;
Trigger Price The trigger price for the tariff item number as notified in the Table MA:4 notification.
3.14. The table below provides, based on MA:5 notifications circulated by the Secretariat up to 16 October 2020, information regarding price-based SSG actions invoked on cotton by the United States. The following column headings are used:
Product Product description as specified in the Table MA:5 notification;
Tariff Line The tariff item number for which the SSG provision was reserved
(through the inclusion of the symbol "SSG") as specified in the Member's schedule reproduced in the CTS using the HS 2002 nomenclature;
Implementation year The implementation year during which SSG action was invoked;
Affected quantity (kg) The quantity in kilograms of the tariff item number affected by the SSG
action as notified in the Table MA:5 notification; and
Notification reference The reference of the relevant notification.
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3.2.3 Invoked price-based SSG for cotton
United States (Table MA:5)
Product Tariff Line Implementation
year
Affected quantity
(kg)
Notification Reference
Short staple cotton, over-quota 52010018 Calendar year, 1996 150 G/AG/N/USA/24 Short staple cotton, over-quota 52010018 Calendar year, 2006 54 G/AG/N/USA/61 Extra long staple cotton, over-quota 52010080 Calendar year, 2003 118,807 G/AG/N/USA/61 Extra long staple cotton, over-quota 52010080 Calendar year, 2007 539 G/AG/N/USA/67
Note: The following paragraph is quoted in all of the above-mentioned US notifications: "United States price-based safeguards are invoked automatically on a shipment-by-shipment basis. Importers who enter goods in an over-quota tariff line are required to declare which pre-established price range is applicable to their product. If there is a safeguard duty associated with that price range, the additional charge is assessed. Entries where the safeguard duties were assessed during the reporting period are summarized in this notification. Information on affected quantities, while not required by the format, is provided for illustrative purposes. Multiple transactions involving the same product have been aggregated for the purposes of this notification."
3.3 TARIFF RATE QUOTAS
3.15. Of the 32 Members covered by the Market Access Part of this background paper, only China, Colombia, South Africa and the United States have scheduled tariff rate quotas28 for cotton.
3.16. This section is organized as follows: Sub-section 3.3.1 provides information regarding the tariff rate quota commitments for cotton as specified in those four Members' schedules; Sub-section 3.3.2 presents the most recent TRQ administration methods notified by those four Members in Table
MA:1 notifications; and Sub-section 3.3.3 provides, for each of those four Members, the TRQ quantities and the notified in-quota imports from Table MA:2 notifications and the corresponding fill
rates further to the request made at the third dedicated discussion.
3.3.1 Tariff rate quota commitments for cotton
3.17. This sub-section lists, by Member, the initial and final bound tariff rate quota quantities and in-quota tariff rates for cotton as specified in the Member's schedule. The following column headings
are used:
TQID The number identifying the bound tariff quota for each Member in the CTS, in the same sequential order as scheduled. The seven-character code is comprised of the three-letter WTO Member code, followed by "Q" for "TRQ", and by the three-digit sequential identifier.
Product The product or group of products as specified in the Member's schedule29;
Tariff Line(s) The tariff item number(s) as specified in the Member's schedule reproduced in the CTS using the HS 2002 nomenclature;
Unit The unit for initial and final bound tariff rate quota quantities;
Initial quota The initial bound tariff rate quota quantity as specified in the Member's
schedule;
Final quota The final bound tariff rate quota quantity as specified in the Member's
schedule; and
In-quota tariff rate The in-quota tariff rate as specified in the Member's schedule.
28 Also referred to as TRQ or tariff quota. 29 In original language only.
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China1
TQID Product Tariff line(s) Unit Initial quota Final quota In-quota tariff rate
CHNQ010 Cotton2 52010000, 52030000
Metric tonnes 780,750 894,000 1%
1 Annex 1 contains the notes from China's schedule concerning tariff rate quota commitments. 2 The following information is taken from the column "other terms and conditions" in China's schedule
for its cotton TRQ commitment (refer to Annex 1, "Note 1") (1) STE share = 33% (see Note 1). (2) Staging for cotton: Year TRQ quantity 2002 818,500 mt. 2003 856,250 mt. 2004 894,000 mt.
Colombia
TQID Product Tariff
line(s) Unit Initial quota Final quota
In-quota tariff rate
COLQ057 Algodon sin cardar ni peinar
5201 Metric tonnes 222 222 99%
COLQ067 Algodon 5201 Metric tonnes 1510 2664 80%
South Africa1
TQID Product Tariff line(s) Unit Initial quota Final quota In-quota tariff rate
1 The following note is included in South Africa's schedule for its TRQ commitments: "South Africa commits itself to fill the quotas as indicated at tariff rates at a maximum of 20% of the bound rates for both the initial and final quantities."
United States1
TQID Product Tariff line(s) Unit Initial quota Final quota In-quota tariff rate USAQ048
52010014 Metric tonnes 10,000 10,000 0% 52010024 USD 0.044 per kilogram 52010034 USD 0.044 per kilogram 52010060 USD 0.015 per kilogram 52029910 0% 52030010 5%
USAQ049
52010014 Metric tonnes 8,495 20,207 0% USAQ050
52010024 Metric tonnes 900 1,400 USD 0.044 per kilogram
USAQ051
52010034 Metric tonnes 5,200 11,500 USD 0.044 per kilogram USAQ052
52010060 Metric tonnes 25,500 40,100 USD 0.015 per kilogram
USAQ053
52029910 Kilograms 1,835,427 3,335,427 0% USAQ054
52030010 Kilograms 1,000 2,500 5%
1 Annex 2 contains the chapter notes from the US schedule concerning TRQ commitments for cotton.
3.18. The following chart summarizes the total number of scheduled TRQs for cotton, by Member, based on the number of TQIDs identified in the CTS.
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Chart 3.3: Number of scheduled TRQs for cotton by Member
3.3.2 Most recent Tariff Rate Quota administration method notified for cotton
3.19. This sub-section describes, for each Member and for each cotton TRQ, the most recent import arrangements notified in Table MA:1 notifications up to 16 October 2020.
3.20. The reference number of the relevant notification is indicated in the title for each Member, with the reporting period covered by the notification specified in brackets.
China
G/AG/N/CHN/2 (calendar year 2003)
CHNQ010
Description of import arrangement applicable
(a) (i) Import tariff quota of agricultural products shall be applicable to global trade. (ii) The tariff quota for the year 2003 is open from the date of issuance to 31 December.
(b) (i) The former State Development Planning Commission was responsible for tariff quota allocation of agricultural products. National Development Reform Commission and Ministry of Commerce are responsible for reallocations.
(ii) Requirements and conditions for applicants applying for import tariff quota are: having
registered with Administration of Industry and Commerce (presenting the duplicate of business licences) prior to 1 October 2002; being under sound financial conditions and having good tax payment records (presenting relevant data for 2001 and 2002); having no records of unlawful acts at the Customs, Administration of Industry and Commerce, Inspection and Quarantine authorities and Taxation Administration within the period of 2000-2002; having passed the annual enterprise review of the year 2001 conducted by Administration of Industry and Commerce and Inspection and Quarantine authorities.
(iii) Import tariff quota for general trade shall be allocated with reference to the volumes for which applicants have applied, previous import performance and production capacity or other applicable commercial standards, or under the principle of "first-come, first-served".
(iv) Licence shall remain valid from the date of issuance to 31 December of the same year.
1
2
1
7
China Colombia South Africa United States
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Colombia
G/AG/N/COL/35 (calendar year 2005)
COLQ067
Description of import arrangement applicable
(a) Allocation of quotas to supplying countries: none. (b) Allocation of licences or of access to quotas to importers: the import quota is allocated on
a competitive basis amongst participants registered with the Ministry of Agriculture and Rural Development. Quota allocation is by means of public auctions in which importers take part through the bid registration system.
(c) Details of other arrangements: not applicable.
(d) Any other information: Decree No. 430 of 2004 of the Ministry of Agriculture and Rural Development
South Africa
G/AG/N/ZAF/35 (calendar year 2001)
ZAFQ053
Description of import arrangement applicable
(a) Country Allocations: Global
(b) Import Allocations: (i) Department of Agriculture will allocate and issue permits annually;
(ii) historical and new importers who are processors of cotton will be eligible for permits; (iii) permits will be issued pro rata; (iv) permits will be valid for twelve months.
United States30
G/AG/N/USA/2/Add.3 and G/AG/N/USA/34/Add.1 (calendar year)
USAQ049
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: See Additional US Note 5 to Chapter 52 of the HTSUS (Annex 1, 36/).
(b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service
(http://www.customs.gov/impoexpo.htm). (c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 5 to chapter 52 of
the HTSUS (Annex 1, note 36/) and in Additional US Note 6 to Chapter 52 of Schedule XX.
USAQ050
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: None. (b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service
(http://www.customs.gov/impoexpo/impoexpo.htm). (c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 6 to chapter 52 of
the HTSUS (Annex 1, note 37/) and in Additional US Note 7 to Chapter 52 of Schedule XX.
30 Annex 3 contains the excerpt of notes from the harmonized tariff system of the United States that
concern cotton (from Annex 1 in G/AG/N/USA/2/Add.3 and G/AG/N/USA/34/Add.1).
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USAQ051
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: None.
(b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service (http://www.customs.gov/impoexpo/impoexpo.htm).
(c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 7 to chapter 52 of
the HTSUS (Annex 1, note 38/) and in Additional US Note 8 to Chapter 52 of Schedule XX.
USAQ052
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: None. (b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service
(http://www.customs.gov/impoexpo/impoexpo.htm). (c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 8 to chapter 52 of
the HTSUS (Annex 1, note 39/) and in Additional US Note 9 to Chapter 52 of Schedule XX.
USAQ053
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: See Additional US Note 9 to Chapter 52 of the HTSUS (Annex 1, 40/).
(b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service
(http://www.customs.gov/impoexpo/impoexpo.htm).
(c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 9 to chapter 52 of
the HTSUS (Annex 1, note 40/) and in Additional US Note 10 to Chapter 52 of Schedule XX.
USAQ054
Description of import arrangement applicable
(a) COUNTRY ALLOCATIONS: See Additional US Note 10 to Chapter 52 of the HTSUS
(Annex 1, 41/). (b) IMPORTER ALLOCATIONS: First-come, first-served, implemented by US Customs Service
(http://www.customs.gov/impoexpo/impoexpo.htm). (c) OTHER ARRANGEMENTS: None. (d) OTHER INFORMATION: This provision is included in Additional US Note 10 to chapter 52 of
the HTSUS (Annex 1, note 41/) and in Additional US Note 11 to Chapter 52 of Schedule XX.
3.3.3 TRQ quantities and in-quota imports for cotton
3.21. This sub-section provides yearly TRQ quantities, notified in-quota imports for cotton, and the corresponding fill rates based on Members' Table MA:2 notifications circulated by the Secretariat up to 16 October 2020.
3.22. Fill rates are calculated based on the data provided in Table MA:2 notifications as the ratio of in-quota imports to notified TRQ quantities. In cases where notified in-quota imports are greater than TRQ quantities, the fill rates are adjusted by setting a maximum of 100% fill rate. The implementation years covered in the tables below are those indicated in the Member's Table MA:2
notifications. The title of the individual tables indicates the TQID of the TRQ, while the quantity unit used in the notification is indicated in brackets.
31 Colombia noted in its MA:2 notifications of 2011-2018 that "Colombia's bound tariff quotas were not activated during the reporting period, as the bound intra-quota tariff
is higher than the most-favoured-nation tariff applied". The data included in the line of "In-quota imports" for 2011-2018 correspond to the total imports as reported by Colombia in the relevant MA:2 notifications. Fill rates are not applicable in those cases.
32 According to the US notification for implementation year 1995, Uruguay Round commitments for cotton products in headings 5201, 5202 and 5203 became effective only
in the fall of 1995, and imports under these commitments were reported along with calendar year 1996 imports in early 1997.
3.23. Based on the information presented in section 3.3.3 above, the following charts show, by Member and by year, notified in-quota imports compared to the scheduled quantity, as well as the corresponding fill rates, under each TRQ.
Charts on notified in-quota imports compared to the scheduled quantity
3.24. This section contains information on other non-tariff measures applicable to cotton. The information presented is sourced from the WTO I-TIP Goods database33, which compiles data about non-tariff measures notified by Members as well as information on "specific trade concerns" raised by Members during WTO Committee meetings.
3.25. The non-tariff measures listed below result from a query in the I-TIP Goods database, using the following criteria:
a. Member imposing the measure: The 32 Members34 selected for this Market Access part;
b. Type of measure covered: Sanitary and Phytosanitary measures (as notified under the Agreement on Sanitary and Phytosanitary measures); measures notified under the Agreement on Technical Barriers to Trade; Anti-Dumping measures (as notified under the Anti-Dumping agreement); Countervailing duties (as notified under the Agreement on Subsidies and Countervailing Measures); Safeguard measures (as notified under the
Agreement on Safeguards); State Trading Enterprises (as notified to the Working Party on State Trading Enterprises, pursuant to Article XVII:4(a) of the GATT 1994 and Paragraph
1 of the Understanding on the interpretation of Article XVII); Quantitative restrictions notified to the Committee on Market Access as per the CTG Decision contained in G/L/59/Rev.1; and import licensing procedures (as notified under the Agreement on Import Licensing procedures).
c. Measures initiated or notified from 1 January 2012 to 16 October 2020 and which have not been withdrawn to date; and
d. Measures with a reference to "cotton" and with a product description encompassing explicitly or potentially HS headings 52.01, 52.02 or 52.03.35
33 http://i-tip.wto.org/goods/default.aspx?language=en. 34 The United Kingdom withdrew from the European Union as of 1 February 2020. The European Union
and the United Kingdom have communicated that, during the transition period, which ends on 31 December 2020, Union law, with a few limited exceptions, continues to be applicable to and in the United Kingdom.
35 It should be noted that, in the absence of specific or further indication by Members, listed measures making reference to "cotton", may in fact not apply to the trade of "cotton" as defined in this paper, i.e. products covered by the Harmonized System nomenclature headings 52.01, 52.02 and 52.03.
3.26. It should be noted that, to date, only one specific trade concern has been raised in the relevant WTO Committees with respect to the non-tariff measures identified in this Section and listed in the table below.36
3.27. The following column headings are used for the tables below:
Member Member notifying the measure.
Partner affected Member(s) affected by the measure if identified in the relevant notification, or otherwise "All Members".
Notif. req. Type of measure notified, using the following coding: "SPS" for Sanitary
and Phytosanitary measures; "TBT" for measures notified under the Agreement on Technical Barriers to Trade; "AD" for Anti-Dumping measures; "CV" for countervailing duties; "SG" for Safeguard measures;
"STE" for State Trading Enterprises; "QR" for Quantitative Restrictions; and "LIC" for import licensing procedures.
Initiation/
notification Date of initiation or notification of the measure.
In force Date of entry into force of the measure (if any) as it appears in the relevant notification.
Measure description Summarized description of the measure based on the information in the relevant notification.
Product description Summarized description of the product covered by the measure based on the information in the relevant notification.
Source Document number of the relevant notification(s).
Chart 3.13: Number of other non-tariff measures applicable to cotton, per type of measure (1 January 2012 to 16 October 2020)
36 Members raised concern regarding the TBT measure applied by China as notified in
G/TBT/N/CHN/1211 at the TBT Committee meeting of 8-9 November 2017. Refer to TBT IMS ID 545 and paragraphs 2.7-2.14 in G/TBT/M/73 for more details.
10
70
1
10
1 2
0
10
20
30
40
50
60
70
80
TBT SPS QR LIC CV AD
TN
/AG
/GEN
/34/R
ev.1
3 •
TN
/AG
/SC
C/G
EN
/13/R
ev.1
3
- 62 -
Member Partner
affected
Notif.
req.
Initiation/
Notification In force Measure description Product description
Source
Peru All
Members
TBT 07/04/2020 Reglamento Interno Sectorial sobre Seguridad de la
Biotecnología para el Desarrollo de Actividades con
Organismos Vivos Modificados para el Sector Agrario
(Sectoral internal regulation on biotechnology safety for activities involving living modified organisms for the
agricultural sector) (58 pages, in Spanish)
...
Section XI (chapters 50 to 53: textiles)
G/TBT/N/PER/121
Brazil All
Members
SPS 09/04/2020 Draft resolution number 800, 26 March 2020, regarding
the active ingredient T48 - TIAMETOXAM (thiamethoxam)
of the Monograph List of Active Ingredients for Pesticides,
Household Cleaning Products and Wood Preservers,
published by Resolution - RE no. 165 of 29 August 2003,
on the Brazilian Official Gazette (DOU - Diário Oficial da